MARKETING MANAGEMENT12th edition 18 Managing Mass Communications Kotler Keller
Chapter Questions • What steps are involved in developing an advertising program? • How should sales promotion decisions be made? • What are the guidelines for effective brand-building events and experiences? • How can companies exploit the potential of public relations and publicity?
Advertising Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
Advertising Objectives Informative advertising Persuasive advertising Reminder advertising Reinforcement advertising
Factors to Consider in Setting an Advertising Budget Stage in the product life cycle Market share and consumer base Competition and clutter Advertising frequency Product substitutability
Developing the Advertising Campaign • Message generation and evaluation • Creative development and execution • Social responsibility review
Positioning statement Key message Target market Objectives Key brand benefits Brand promise Evidence of promise Media Background Creative considerations Creative Brief
Advantages Reaches broad spectrum of consumers Low cost per exposure Ability to demonstrate product use Ability to portray image and brand personality Disadvantages Brief Clutter High cost of production High cost of placement Lack of attention by viewers Television
Advantages Detailed product information Ability to communicate user imagery Flexibility Ability to segment Disadvantages Passive medium Clutter Unable to demonstrate product use Print Ads
Print Ad Components Headline Picture Signature Copy
Print Ad Evaluation Criteria • Is the message clear at a glance? • Is the benefit in the headline? • Does the illustration support the headline? • Does the first line of the copy support or explain the headline and illustration? • Is the ad easy to read and follow? • Is the product easily identified? • Is the brand or sponsor clearly identified?
Media Selection Reach Frequency Impact Exposure
Figure 1.2 Relationship among Trial, Awareness, and the Exposure Function
Choosing Among Major Media Types • Target audience and media habits • Product characteristics • Message characteristics • Cost
Newspapers Television Direct mail Radio Magazines Outdoor Yellow pages Newsletters Brochures Telephone Internet Major Media Types
Place Advertising • Billboards • Public spaces • Product placement • Point-of-purchase
Measures of Audience Size • Circulation • Audience • Effective audience • Effective ad-exposed audience
Factors Affecting Timing Patterns • Buyer turnover • Purchase frequency • Forgetting rate
Media Schedule Patterns • Continuity • Concentration • Flighting • Pulsing
Evaluating Advertising Effectiveness • Communication Effect Research • Consumer feedback method • Portfolio tests • Laboratory tests • Sales-Effect Research
Sales Promotion Collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.
Consumer-directed Samples Coupons Cash refund offers Price offs Premiums Prizes Patronage rewards Free trials Tie-in promotions Trade-directed Price offs Allowances Free goods Sales contests Spiffs Trade shows Specialty advertising Sales Promotion Tactics
Using Sales Promotions Establish objectives Select tools Develop program Pretest Implement and control Evaluate results
Events and Experiences • $11.14 billion spent on sponsorship in 2004 • 69% sports • 10% tours • 7% festivals, fairs • 5% arts • 9% causes
Why Sponsor Events? • To identify with a particular target market or life style • To increase brand awareness • To create or reinforce consumer perceptions of key brand image associations • To enhance corporate image • To create experiences and evoke feelings • To express commitment to community • To entertain key clients or reward employees • To permit merchandising or promotional opportunities
Using Sponsored Events Establish objectives Choose event opportunities Design program Implement and control Measure effectiveness
Ideal Events Audience closely matches target market Event generates media attention Event is unique with few sponsors Event lends itself to ancillary activities Event enhances brand image of sponsor
Public Relations Functions • Press relations • Product publicity • Corporate communications • Lobbying • Counseling
Marketing Public Relations Functions • Assist in product launches • Assist in repositioning mature products • Build interest in a product category • Influence specific target groups • Defend products • Build corporate image
Major Tools in Marketing PR • Publications • Events • Sponsorships • News • Speeches • Public Service Activities • Identity Media
Steps in Marketing PR Establish objectives Choose messages Choose vehicles Implement and control Measure effectiveness
Marketing Debate • Has TV Advertising Lost Power? Take a position: • TV advertising has faded in importance. 2. TV advertising is still the most powerful advertising medium.
Marketing Discussion • What are some of your favorite TV ads? Why? How effective are the message and creative strategies? How are they building brand equity?